HGH - Heartland Group Holdings

[mouse]

It seems Coop Bank is in trouble. But not our one.
http://www.telegraph.co.uk/finance/n...tal-fears.html
The point being, that having Reserve Bank supervision is worth quite a bit. Even if Heartland is a finance company.
And Percy, no return of capital is anywhere on the horizon. Heartland needs the capital in these times.

[CJ]

Not what management told me. They are considering a share buyback, amongst other options, if they don't have a use for the money.

Why is this. My understanding is Kiwibank needs more capital to be able to grow - and they operating in areas (ie home loans) that require lower capital that what Heartland does (consumer finance etc).

Hvae they decided to stay niche and not grow or is their profitably sufficient because they dont operate in the extremely competitive home loan area that Kiwibank does.

And based on this, the DRiP they have offered is because that is what investors have asked for, not what the company needs (which is backed up by the fact no discount is being offered.)

[percy]

CJ.
Heartland have an agreement with Kiwi bank,where Heartland pass on home mortgages to them.[ I expect they collect a finders fee]
They see ample growth in the areas they want to be in.Home loans is not one of them.
That is not to say they willn't do home loans.
Your statement about them staying niche is right.

[CJ]

Heartland have an agreement with Kiwi bank,where Heartland pass on home mortgages to them.[ I expect they collect a finders fee]
They see ample growth in the areas they want to be in.Home loans is not one of them.
That is not to say they willn't do home loans.
Your statement about them staying niche is right.

Appreciate that Percy. My point was they are niche in an area that needs more capital than home loans. Is it more profitable on a ROE basis? Some are saying they need more capital, some say they have far to much.

[percy]

Appreciate that Percy. My point was they are niche in an area that needs more capital than home loans. Is it more profitable on a ROE basis? Some are saying they need more capital, some say they have far to much.

On this HNZ thread there are two views.
1] HNZ will need a cash issue to grow.HNZ does not have enough capital.HNZ are not in a position to pay a dividend.Need more capital because they are not into home loans.Need dividend reinvestment to preserve capital.
2] Two posters [sparky and me] who have spoken to HNZ's CFO Craig Stephen.We both have reported that HNZ have TOO much capital,and that HNZ are looking to grow their ROE, not their loan book.
You have a choice as to which view you consider is correct.

[forest]

On this HNZ thread there are two views.
1] HNZ will need a cash issue to grow.HNZ does not have enough capital.HNZ are not in a position to pay a dividend.Need more capital because they are not into home loans.Need dividend reinvestment to preserve capital.
2] Two posters [sparky and me] who have spoken to HNZ's CFO Craig Stephen.We both have reported that HNZ have TOO much capital,and that HNZ are looking to grow their ROE, not their loan book.
You have a choice as to which view you consider is correct.

As Percey says there are 2 views, but logic would favour one of those views if one remembers that HNZ committed itself to regular dividends and also paid a special dividend last year, unless one thinks HNZ board is totally stupid.

disclosure, I have it in the ST contest and

[Snoopy]

As Percy says there are 2 views, but logic would favour one of those views if one remembers that HNZ committed itself to regular dividends and also paid a special dividend last year, unless one thinks HNZ board is totally stupid.

Forest , the shareholders who got their HNZ shares via PGC, were sold the idea that PGC was the deal making risk taking arm going forwards, and HNZ was the conservative soon to be bank, paying good dividends. At the end of the day HNZ need to pay dividends to keep their founding shareholder base happy, IMO.

SNOOPY

[Snow Leopard]

The sooner HNZ launch their capital raising to buy back shares and pay a special dividend the sooner everybody will be right

Best Wishes
Paper Tiger

[percy]

The sooner HNZ launch their capital raising to buy back shares and pay a special dividend the sooner everybody will be right

Best Wishes
Paper Tiger

Yeah Right.!!!!
Please continue your story telling on Serko thread,we are all waiting for the "good oil." lol.

[winner69]

One way of increasing ROE is increasing leverage and making more money on the same equity